Local Indian pig iron prices have remained stable during the past week at around INR 17,700/mt ($271/mt) ex-works despite reductions made by domestic producers to their base prices, traders said on Wednesday, October 7.
According to a Kolkata-based trader, Neelachal Ispat Nigam Limited (NINL) has announced a cut in its base pig iron prices by around INR 300/mt ($6/mt) for deliveries in the current month and others like Rashtriya Ispat Nigam Limited (RINL) are also expected to announce reduced prices later in the week.
However, traders have been maintaining their prices unchanged amid a slight recovery in demand for steel grade pig iron and given expectations of rising demand for long products from the construction sector, the trader added.
Pig iron prices had recorded consecutive gains in the previous five weeks and the stability in prices during the past week has been interpreted as an indication of consolidation and dealers have been happy to improve margins even though producers were adjusting prices in a downward direction, sources said.
However, some traders are cautious about predicting that the worst might be over for the pig iron market, considering the fact that not a single export contract was concluded by any of the producers during the April-September period, which could aggravate oversupply in the market and increase inventories held by producers, thereby putting fresh pressure on local prices.